• The Journal of Asian Finance, Economics and Business
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• v.8 no.7
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• pp.457-468
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• 2021

This study seeks to examine the effects of fraud management accounting on organizational value creation of listed firms in Thailand through internal audit function and internal audit effectiveness as the mediators of the study. In addition, governance culture and digital capability are hypothesized to affect fraud management accounting, internal audit function, and internal audit effectiveness. The 297 listed firms in Thailand are the samples of the study. The structural equation model is applied to test the research relationships. The results of the study indicate that, firstly, fraud management accounting has an effect on internal audit function, internal audit effectiveness, and organizational value creation. Secondly, internal audit function affects both internal audit effectiveness and organizational value creation. It also mediates the fraud management accounting-organizational value creation relationships. Thirdly, internal audit effectiveness affects organizational value creation and it mediates the fraud management accounting-organizational value creation relationships. Finally, governance culture affects fraud management accounting, internal audit function and internal audit effectiveness. Accordingly, executives can support, promote and enhance the applications of fraud management accounting in an organization, and utilize its concepts as the valuable tools in order to create best organizational practices and achieve their business goals in the current and future operations.

• The Journal of Asian Finance, Economics and Business
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• v.9 no.1
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• pp.311-324
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• 2022

The objective of this study is to examine the influence of fraud investigation on organizational performance of Thai listed companies through mediating effects of internal audit quality, accounting information transparency and financial effectiveness, and moderating effect of corporate governance. In this study, 333 Thai listed companies are the samples of the study. Both the structural equation model and multiple regression analysis are used to examine the research relationships. The results of this study show that fraud investigation has a significant influence on internal audit quality, accounting information transparency, and financial effectiveness. Internal audit quality significantly influences accounting information transparency, financial effectiveness, and organizational performance while financial effectiveness significantly influences organizational performance. Next, both internal audit quality and financial effectiveness potentially mediate the fraud investigation-organizational performance relationships. In addition, corporate governance critically moderates the fraud investigation-internal audit quality relationships and the fraud investigation-financial effectiveness relationships. In summary, fraud investigation functions as an important valuable technique of internal audit practices. As a result, businesses must build and implement a systematic fraud investigation procedure to generate and improve beneficial outcomes in the short, medium, and long term.

• Korean Security Journal
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• no.56
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• pp.165-185
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• 2018

Because financial industry is closely related to the daily lives of people, internal fraud such as embezzlement by the employees can cause serious damage to the national economy, including credit crunch and contagious bankruptcy, as once demonstrated in the Savings Bank Scandal in 2011. Therefore, the importance of financial industry security is being emphasized and developed into converged security that combines physical, human and cyber security. In this study, to prevent fraud caused by internal employees in Korean financial sector, in-depth semi-structured interviews were conducted with a total of 16 participants including bankers, officials of financial regulators, and security experts, who were in charge of risk management in the industry. The collected data were analyzed at three stratification levels such as individual, organization, and socio-cultural factor. Based on this analysis, policy recommendations were suggested for the development of financial industry security and reducing internal fraud in banking institutions.

• The Journal of Asian Finance, Economics and Business
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• v.9 no.5
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• pp.561-573
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• 2022

This study aims to obtain empirical evidence of the absence of testing the effect of professional ethics, emotional intelligence, and internal auditor performance on professional skepticism. According to this study, internal auditors can use professional skepticism to better understand red flag fraud. Questionnaires were used as the research instruments in this study. The participants included 186 auditors. Using structural equation modeling, this study confirms the hypothesis. The results show that the application of professional ethics and emotional intelligence has a positive effect on professional skepticism. The findings show that 1) professional skepticism can improve internal auditors' understanding of the red flags of fraud, 2) professional ethical norms influence how people behave and accomplish jobs, and 3) how constructive findings are produced by an audit procedure that adheres to the requirements of an audit expert, not just an espionage agent trained to infiltrate. As a result, internal auditors' higher performance in performing functions as a building agent rather than a secret agent like intelligence can be attributed to this. This study provides evidence that 1) not only does the use of professional ethics increase professional skepticism, but high emotional intelligence also plays a role, and 2) professional skepticism can improve internal auditors' understanding of red flags of fraud.

• East Asian Journal of Business Economics (EAJBE)
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• v.4 no.4
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• pp.8-20
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• 2016

Banks are the engines that drive the operations in financial sector, money markets and growth of economy. With growing banking industry in India, frauds in Banks are increasing and fraudsters are becoming more sophisticated and ingenious. Shockingly, banking industry in India dubs rising fraud as "an inevitable cost of doing business." As part of study, a questionnaire-based survey was conducted in 2012-13 among 345 Bank employees "to know their perception towards bank frauds and evaluate factors that influence the degree of their compliance level." The study reveals, "there are poor employment practices and lack of effective employee training; usually over-burdened staff, weak internal control systems, and low compliance levels on the part of Bank Managers, Offices and Clerks. Although banks cannot be 100% secure against unknown threats, a certain level of preparedness can go a long way in countering fraud risk. Internal audit professionals should play an integral role in organization's fraud-fighting efforts. Some other promising steps are: educate customers about fraud prevention, make application of laws more stringent, leverage the power of data analysis technologies, follow fraud mitigation best practices, and employ multipoint scrutiny.

• Journal of Digital Convergence
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• v.20 no.3
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• pp.35-40
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• 2022

With the advent of the internet age and the outbreak of COVID-19, many companies have embraced online trade. However, due to the way the cyber economy works, the number of companies engaged in financial fraud by falsifying their transaction amounts and customer numbers has been gradually increasing. The purpose of this study is to analyze financial fraud of companies in the Internet era and to present solutions. Therefore, this study analyzed the financial fraud behavior of Luckin Coffee in China as an example and studied the causes and countermeasures of financial fraud. As a result, it was found that the cause of financial fraud lies in the opacity of cash flows from online transactions. The recommendations proposed by this study is to improve internal control systems in companies, develop risk management system, and establish comprehensive external supervision system

• The Journal of Economics, Marketing and Management
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• v.3 no.1
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• pp.33-39
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• 2015

Managers are always trying to be the best internal controls in their organizations copper approximate because they know that be effective internal control over previous systems, to fulfill the mission of the organization and minimize unexpected events will be extremely difficult. On the other hand, the existence of internal controls to increase efficiency, reduce head loss, assets and achieving a reasonable assurance of the reliability of financial statements and compliance with laws and regulations will be. Internal control, not an event, but a series of operations and activities on the basis of output. Internal controls help to achieve the goal of minimizing the problems of implementing appropriate internal controls. Internal control is an integral component of corporate governance that will provide reasonable assurance of achieving the organization's objectives. preventing, detecting errors and fraud goes to work. Responsibility for the prevention and detection of fraud and error in the public sector is the responsibility of managers. Managers of internal control and consistently applying appropriate accounting systems, this responsibility will play (Lin et al., 2011). Since the public sector organizations differ from each other, thus establishing internal controls cant be the same for all organizations and agencies of the public sector. Establish specific controls on each system to factors such as size, type of operation and organizational goals that the system is designed, it depends. On the other hand, rapid advances in information technology, the need to update internal control guidelines in relation to Create a new computer system so as to ensure that the activities of managers and effective control Should be updated if necessary.

• Journal of Distribution Science
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• v.21 no.12
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• pp.71-81
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• 2023

Purpose: This research aims to analyze the influence of greed, opportunity, need, exposes on fraudulence financial reporting by using the distribution of political connections as a moderating variable. Research design, data, methodology: Using data collected from 180 respondents who were leaders involved in financial reports in state-owned companies and manufacturing companies in South Sulawesi, Indonesia. Data analysis using SEM PLS. Results: The results of this research show that greed, opportunity, need, exposes, political connections have a significant positive effect on fraudulence financial reporting. Political connection is able to moderate greed, need, exposes to fraudulence financial reporting. Furthermore, political connections are unable to moderate the opportunity for fraudulence financial reporting in company. Conclusion: Greed, opportunities, needs, exposes can influence someone to carry out financial fraud reporting in the company because of internal or external factors that cause someone to commit fraud. Every perpetrator of fraud should be subject to punishment or sanctions if proven to have committed fraud. Political connections can influence fraudulent financial reporting due to the potential for intervention and political pressure that can affect the integrity of financial reporting. Political connections are able to moderate greed, need, exposes against fraudulent financial reporting.

• The Journal of Industrial Distribution & Business
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• v.6 no.2
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• pp.13-16
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• 2015

Purpose - Benford's Law is a simple and effective auditor tool that detects fraud. This paper's purpose is to audit the efficiency of Benford's law, which uses a set of strange observations, certain numbers repeated over other numbers in the data set. Research design, data, and methodology - Benford's law was applied in numerical analysis. We can say that in addition to reducing the duration of the audit, the capacities of the audit were more robust. Results - Sample auditse valuated the ability of auditors to prove fraud and expand the use of analytical procedures in planning the audit. Additionally, the use of the analyses as part of the computer's internal controls helped to further improve the effectiveness of internal controls and reinforce them. Conclusions - Benford analysis should be carried out as appropriate. In subsequent studies, it can also be examined as a tool to reveal doubtful accounts. Numerical analysis of the data and a computer are necessary. Programs for data analysis in various applications such as auditing (SAS) and (ACL) and (Case Ware) and (IDEA) are available.

• Journal of the Korea Convergence Society
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• v.8 no.4
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• pp.19-24
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• 2017

The growing number of electronic financial transactions (e-banking) has entailed the rapid increase in security threats such as extortion and falsification of financial transaction data. Against such background, rigid security and countermeasures to hedge against such problems have risen as urgent tasks. Thus, this study aims to implement an improved case model by applying the Fraud Detection System (hereinafter, FDS) in a financial corporation 'A' using big data technique (e.g. the function to collect/store various types of typical/atypical financial transaction event data in real time regarding the external intrusion, outflow of internal data, and fraud financial transactions). As a result, There was reduction effect in terms of previous scenario detection target by minimizing false alarm via advanced scenario analysis. And further suggest the future direction of the enhanced FDS.